Morgan's 9/11 Excuse Falls Flat

Morgan Stanley(MS Quote) is in hot water with regulators for using the Sept.11 terror attack as an excuse for not producing documents in customer arbitrations.

The NASD is suing the big Wall Street firm claiming it falsely told investors and their lawyers that critical emails were lost in the terror attacks that destroyed the World Trade Center complex, where Morgan Stanley had maintained a big operation.

Regulators allege the claim was a false because the firm was able recover most of those emails within days of the attack. ...